Apple, Amazon Post Strong Earnings Amid Tariff Concerns

Apple and Amazon both reported earnings that surpassed analysts' expectations for the recent quarter, continuing the trend of strong performance among major tech companies. However, underlying concerns emerged: Apple's Services division fell short of estimates and the company faces significant costs from tariffs, prompting ongoing efforts to diversify its supply chain away from China. Amazon also issued cautious guidance for the next quarter, citing tariff and trade policy uncertainties, and its cloud division missed revenue targets, suggesting possible market share loss to competitors. Both companies' stock prices slipped in after-hours trading despite their headline beats, reflecting investor worries about future growth and geopolitical risks. Meanwhile, overall market sentiment remains optimistic, buoyed by strong showings from other tech giants and positive developments in U.S.-China trade talks, but caution persists due to broader economic uncertainties and mixed outlooks from company management. Analysts and investors continue to monitor the impact of tariffs and regulatory actions, which could influence the tech sector's trajectory in the coming quarters.